Insider Buying: These Stocks Are CEO Favorites

Portfolio manager David Miller buys only companies whose top execs put their own money on the line.

While many fund managers use complex strategies to try to outsmart the market, David Miller of Catalyst Funds takes a different approach. Miller watches the people with the best information about a given company -- the top executives -- and does what they do.

The term "insider trading" conjures up the headline-making scandals, such as the accusations dogging SAC Capital. But executives legally buy and sell shares of their companies all the time, and academic studies suggest that insiders generally beat the...